9.41 USD
-0.01 (-0.11%)
9.22 USD
-0.19 (-2.02%)
We assign a fundamental rating of 6 out of 10 to ERIC. ERIC was compared to 48 industry peers in the Communications Equipment industry. ERIC has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ERIC. ERIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ERIC had positive earnings in the past year.
- In the past year ERIC had a positive cash flow from operations.
- Of the past 5 years ERIC 4 years were profitable.
- Each year in the past 5 years ERIC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ERIC (8.72%) is better than 85.42% of its industry peers.
- With an excellent Return On Equity value of 24.01%, ERIC belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.20%, ERIC belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
- ERIC had an Average Return On Invested Capital over the past 3 years of 10.59%. This is in line with the industry average of 12.15%.
- The 3 year average ROIC (10.59%) for ERIC is below the current ROIC(15.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 15.2% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
1.3 Margins
- ERIC's Profit Margin of 10.26% is amongst the best of the industry. ERIC outperforms 81.25% of its industry peers.
- In the last couple of years the Profit Margin of ERIC has declined.
- Looking at the Operating Margin, with a value of 12.97%, ERIC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- ERIC's Operating Margin has improved in the last couple of years.
- ERIC has a Gross Margin of 47.62%. This is in the better half of the industry: ERIC outperforms 62.50% of its industry peers.
- In the last couple of years the Gross Margin of ERIC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% |
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIC is creating value.
- The number of shares outstanding for ERIC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ERIC has been increased compared to 5 years ago.
- Compared to 1 year ago, ERIC has an improved debt to assets ratio.
2.2 Solvency
- ERIC has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
- The Debt to FCF ratio of ERIC (1.45) is better than 72.92% of its industry peers.
- ERIC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.35, ERIC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- Even though the debt/equity ratio score it not favorable for ERIC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC1.86
WACC8.19%
2.3 Liquidity
- ERIC has a Current Ratio of 1.17. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.17, ERIC is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
- ERIC has a Quick Ratio of 1.17. This is a bad value and indicates that ERIC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.94, ERIC is doing worse than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- ERIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 541.12%, which is quite impressive.
- The earnings per share for ERIC have been decreasing by -17.01% on average. This is quite bad
- ERIC shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
- The Revenue has been growing slightly by 1.76% on average over the past years.
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
3.2 Future
- Based on estimates for the next years, ERIC will show a very strong growth in Earnings Per Share. The EPS will grow by 29.52% on average per year.
- The Revenue is expected to decrease by -1.48% on average over the next years.
EPS Next Y352.29%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
EPS Next 5Y29.52%
Revenue Next Year-5.09%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.19%
Revenue Next 5Y-1.47%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ERIC is valuated reasonably with a Price/Earnings ratio of 10.12.
- ERIC's Price/Earnings ratio is rather cheap when compared to the industry. ERIC is cheaper than 93.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, ERIC is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.90 indicates a correct valuation of ERIC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 87.50% of the companies listed in the same industry.
- ERIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 93.75% of the companies listed in the same industry.
- ERIC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERIC is cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
- ERIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ERIC has an outstanding profitability rating, which may justify a higher PE ratio.
- ERIC's earnings are expected to grow with 58.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y97.18%
EPS Next 3Y58.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.23%, ERIC has a reasonable but not impressive dividend return.
- ERIC's Dividend Yield is rather good when compared to the industry average which is at 0.77. ERIC pays more dividend than 89.58% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, ERIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
- The dividend of ERIC is nicely growing with an annual growth rate of 22.02%!
- ERIC has paid a dividend for at least 10 years, which is a reliable track record.
- ERIC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 37.84% of the earnings are spent on dividend by ERIC. This is a low number and sustainable payout ratio.
- ERIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.84%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
9.41
-0.01 (-0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-23 2026-01-23/bmo
Inst Owners56.85%
Inst Owner Change-0.27%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap31.37B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.43
Price Target9.66 (2.66%)
Short Float %1.58%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend0.29
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.11%
Min EPS beat(2)20.62%
Max EPS beat(2)77.6%
EPS beat(4)3
Avg EPS beat(4)34.33%
Min EPS beat(4)-10.72%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-29.88%
EPS beat(12)9
Avg EPS beat(12)-11.71%
EPS beat(16)10
Avg EPS beat(16)-8.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)4.87%
PT rev (3m)14.19%
EPS NQ rev (1m)-2.91%
EPS NQ rev (3m)18.44%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)21.62%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 12.9 | ||
| P/S | 1.19 | ||
| P/FCF | 9.42 | ||
| P/OCF | 8.43 | ||
| P/B | 2.79 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)0.93
EY9.88%
EPS(NY)0.73
Fwd EY7.75%
FCF(TTM)1
FCFY10.62%
OCF(TTM)1.12
OCFY11.86%
SpS7.9
BVpS3.37
TBVpS1.47
PEG (NY)0.03
PEG (5Y)N/A
Graham Number8.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 15.2% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 46.36% | ||
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% | ||
| FCFM | 12.65% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
ROICexc(3y)14.83%
ROICexc(5y)17.86%
ROICexgc(3y)47.09%
ROICexgc(5y)43.4%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y7.91%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y4.9%
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC8.19%
ROIC/WACC1.86
Cap/Depr(3y)47.04%
Cap/Depr(5y)51.35%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
EPS Next Y352.29%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
EPS Next 5Y29.52%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
Revenue Next Year-5.09%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.19%
Revenue Next 5Y-1.47%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year112.01%
EBIT Next 3Y21.84%
EBIT Next 5Y14.41%
FCF growth 1Y392.6%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y169.74%
OCF growth 3Y5.8%
OCF growth 5Y22.35%
ERICSSON (LM) TEL-SP ADR / ERIC FAQ
What is the fundamental rating for ERIC stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERIC.
What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?
ChartMill assigns a valuation rating of 9 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.
How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?
ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.
What is the expected EPS growth for ERICSSON (LM) TEL-SP ADR (ERIC) stock?
The Earnings per Share (EPS) of ERICSSON (LM) TEL-SP ADR (ERIC) is expected to grow by 352.29% in the next year.
Can you provide the dividend sustainability for ERIC stock?
The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 8 / 10 and the dividend payout ratio is 37.84%.